Specialty Baker Business Plan

Morningstar Bakery

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Market Analysis Summary

4.0 Market Analysis Summary

Our target market includes people who are health conscious and/or have common food allergies. This is a niche market since most bakeries do not cater to these needs with the exception of high-fiber diets.

4.1 Market Segmentation

Our target market consists of three groups:

The Allergy Group
According to Health Magazine, one out of five people suffer from a common food allergy, however many bakeries do not cater to their needs.

The Doctor Diet Group
For health reasons, many people are warned off certain foods by their doctors because of high cholesterol and blood pressure. Currently the main killer in the U.S. is heart disease according the American Heart Association. Many Americans aged 50+ are going on special diets to prevent heart disease.

The Diet Craze Group
According to Self Magazine, the year 2000 saw 20 new diet fads that discouraged certain foods such as wheat and dairy. The best selling book on the New York Time list for health was the "Blood Type Diet" which encourages readers to eat only non-gluten flours such as spelt, and to avoid dairy. While this target market is quite large, it is ever fluctuating since most people who diet yo-yo between different diets (Self Magazine September 2000).

Market Analysis (Pie)



Market Analysis

Market Analysis
		2002	2003	2004	2005	2006
Potential Customers	Growth						CAGR
The Allergy Group	15%	32,000	36,800	42,320	48,668	55,968	15.00%
The Doctor Group	15%	19,200	22,080	25,392	29,201	33,581	15.00%
The Dieters Group	15%	48,000	55,200	63,480	73,002	83,952	15.00%
Total	15.00%	99,200	114,080	131,192	150,871	173,501	15.00%

4.2 Target Market Segment Strategy

In our target market, we will mainly focus on the "allergy group" since they are the most prevalent and steady of customers. We expect that the "doctor diet group" and the '"diet craze" group will make up a smaller portion of our customers. We have not listed "regular customers" as a target group since the customers who do not fit into any of our groups are too varied to segment. We are specifically filling the needs of the "allergy group" so we expect the most business from this group.

4.3 Industry Analysis
Morningstar bakery competes in the Food Services Industry. In addition to competing with other organic and non-wheat bakeries, it competes with all restaurants, delis, bakeries and supermarkets for a share of its customers's food pound. Morningstar is most concerned with competitors who differentiate their products and services with a healthy, organic focus. Because this group is so large, Morningstar has chosen to limit its analysis to other gluten-free bakeries.
4.3.1 Competition and Buying Patterns

Currently there are two bakeries in town that provide non-wheat goods.

Great Harvest Bread Company

Strengths: Makes spelt bread, muffins and cookies every Monday, Wednesday and Friday. Well-established bakery in town. Sells breads in local grocery stores.

Weaknesses: Does not provide a wide selection of non-wheat goods. Furthermore the texture and flavor of their spelt goods is very dense and flavorless. They use whole spelt bread which makes a denser, crumby consistency bread. We use white spelt in our spelt breads and other goods which has a texture and flavor similar to wheat.

The Sweet Life Patisserie

Strengths: Makes spelt bread, muffins and brownies every day. Will make custom-ordered non-gluten cakes.

Weaknesses: Does not produce a wide selection or large quantity of non-wheat goods. Their main focus is wheat goods.